Former TCW fund manager Jeffrey Gundlach has formed a strategic relationship with Oaktree Capital Management, which will back his new firm DoubleLine, according to a release from the new firm.
DoubleLine, which is expected to be based in Los Angeles, Calif., will manage core and MBS portfolios. Additionally, alternatives money manager Oaktree Capital Management will receive a minority equity position in the young firm and help to formulate its operational structure, the Dec. 14 press release stated.
The new firm will be staffed by more than 30 members of Gundlach's team from TCW who left with him. The names include Philip Barach, who formerly co-managed the TCW Total Return Bond Fund.
“I’m particularly gratified that so many members of our former team at TCW are joining us in this new venture,” Gundlach said in the release today. “…[and] our agreement with Oaktree…will provide DoubleLine with invaluable administrative support and resources while my seasoned team focuses on bring our proven investment and risk management serviced to our valued clients.”
Oaktree Capital Management is a privately held Los Angeles money manager.
As previously reported by Investment Management Weekly (IMW), Gundlach’s termination from TCW occurred Dec. 4.
Erin Freeman, TCW spokesperson, told IMW Dec. 7 that Gundlach’s firing came as a result of his threats to “leave TCW and take key employees with him.” She added that the apparent risk left TCW “no choice” because it “would have interrupted [TCW’s] ability to manage clients high-grade fixed-income assets.”
According to today’s release, DoubleLine is currently in the process of registering with the Securities and Exchange Commission as an investment advisor and is pending application approval.
Oaktree Chairman Howard Marks stated that his long history with Gundlach and Barach helped to make the decision to provide support to the grass-roots investment company a little easier. He recalled on their 20-year relationship.
As of Sept. 30, Oaktree has more than $67.4 billion in assets under management.
“We were happy to agree to help them establish their new business,” Marks said in the release. “I'm confident that Oaktree's association with DoubleLine will help bring exceptional management to DoubleLine's clients, while benefiting Oaktree's clients through enhanced market insight and possible joint product offerings.”
Calls placed to Freeman’s office today were not immediately returned.